South African insurtech launches prepaid car insurance
South African insurtech company Vaai.co has launched a new prepaid car insurance which is aimed at consumers who seek affordability.
The co-founders,Thabang Butelezi and Duncan Barker, say the product works like prepaid airtime, consumers can buy the cover they can afford, any time they need it.
The user can recharge the cover if they need to. The cover starts at R40 a day for a R13 000 daily cover. The insurance is capped at R120 000 and covers accidents only.
Butelezi says, for prepaid 24-hour insurance, customers need to download the Vaai.co app from the Google Play store to purchase a one-off data logger for R350 which will be delivered.
“You can also purchase the data logger through an agent,” he says.
“The data logger runs diagnostics on your car, saving you money on expensive mechanical and electrical damage. It also allows Vaai.co to detect if you had a major accident and can dispatch a towing service and support to you,” Butelezi says.
Barker says payments can be made on the app. Cash payments are also accepted at FNB ATMs.
“We keep things simple – you select the amount of cover you need for the next 24 hours, based on what you can afford, We don’t care about your claim history,” said Barker.
A 2018 AA study estimated that only three cars out of 10 were insured on the road as motorists usually found car insurance expensive.
While Butelezi says their pre-paid insurance is innovative, he cautions consumers that Vaai.co is not a replacement for traditional car insurance.
“The insurance is basic cover per day, Vaai.co is for those times you think a specific driving occasion is riskier.”
In the app users can also request roadside assistance.
Vaai.co is underwritten by Compass Insurance and is available in Gauteng. There are plans to expand nationally. Go to www.vaai.co, download the app from the Google Play store or call 010 100 8224.
BUSINESS REPORT ONLINE